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5 months agoUS
Asus is putting its smartphone business on hold indefinitely, according to recent announcements. The company plans to shift its focus towards AI-driven products, including robotics and smart glasses. This move signals a significant change in strategy for the tech giant, which has been a player in the Android device market for years.
Key Insights
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Asus Chairman Jonney Shih confirmed the company will not release new smartphone models in the future.
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The company will continue to support existing smartphones with software updates and warranty assistance.
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Asus plans to redeploy its smartphone research and development teams to work on AI projects.
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The decision comes as the smartphone market matures and competition from Chinese OEMs increases.
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Asus saw a 26.1 percent increase in revenue for 2025, thanks to its AI server business, influencing the shift in focus.
Why this matters: This decision reflects the increasing challenges in the smartphone market and the growing importance of AI technologies. For consumers, it means one less option in the smartphone market, particularly in the gaming phone niche. For Asus, it represents a strategic move to capitalize on the growing AI sector.
In-Depth Analysis
Asus's exit from the smartphone market is part of a broader trend of OEMs struggling to compete in a saturated market. With longer upgrade cycles and increased competition, particularly from Chinese manufacturers, maintaining profitability in the smartphone business has become increasingly difficult.
The company's Zenfone line, known for being smaller and cheaper, struggled with software support. The ROG Phone line, popular among gamers, faced high prices compared to competitors like Samsung and Apple.
Asus's shift to AI reflects the growing importance of this sector. By focusing on AI projects like robots and smart glasses, Asus aims to leverage its expertise in hardware and software to capitalize on new opportunities.
How to Prepare:
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Consumers: Explore alternative smartphone brands and models that meet your needs.
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Investors: Monitor Asus's performance in the AI sector and assess the potential for growth.
Who This Affects Most:
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Smartphone enthusiasts who appreciated Asus's unique designs and features.
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Gamers who relied on the ROG Phone line for high-performance mobile gaming.
FAQs
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Q: Will Asus ever release new phones again?
Asus will take an “indefinite wait-and-see” approach, according to translated reports.
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Q: What will happen to my existing Asus phone?
Asus will continue to provide software updates and warranty assistance for existing devices.
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Q: What AI products will Asus focus on?
Asus plans to focus on AI projects like robots and smart glasses.
Key Takeaways
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Asus is exiting the smartphone market to focus on AI.
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Existing Asus phone owners will continue to receive support.
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The smartphone market is becoming increasingly competitive.
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AI is a key area of growth for Asus.
Discussion
Do you think this trend will last? Let us know!
Share this article with others who need to stay ahead of this trend!
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